Superannuation Age Rules: Myths, Facts & Tips #1

In preparation for 'simpler super' the commissioner has released a series of factsheets to help people understand what is fact or fiction when it comes to superannuation.

Age rules:

Myth
Everybody over 60 can take their money out of their super fund tax free and keep working.

Fact
This is only true for money taken out of taxed funds. It also depends on the type of fund and how you take the money out.

Tip
If you are over 60 and considering taking money out of your super but continuing to work seek financial advice or talk to your super fund.

Superannuation Co-Contributions: Myths, Facts & Tips #4

Myth
You have to apply to receive the Super Co-Contribution.

Fact
There is no application process for Super Co-Contribution – it is paid automatically to eligible people who make a personal contribution to their super.

Tip
To make sure you receive any co-contribution you are eligible for, make sure your fund has your tax file number and your contribution is with your fund before 30 June. The Super Co-contribution will be pain into your super fund after you lodge your income tax return.

Superannuation Co-Contributions: Myths, Facts & Tips #3

Myth
Everyone can get a Super Co-Contribution of $1.50 for every $1 they contribute to super, regardless of how much they contribute and earn.

Fact
The maximum Super Co-Contribution people can receive is $1,500 per year. People earning $28,000 or less per year receive $1.50 for every $1 they contribute up to a maximum co-contribution of $1,500 per year.

The amount of co-contribution paid for each dollar of personal contribution made by people earning more than $28,000 but less than $58,000 a year reduces on a sliding scale.

Tip
Use the ATO calculator to work out how much co-contribution you could receive.

Superannuation Co-Contributions: Myths, Facts & Tips #2

Myth
I never have $1,000 to contribute at any one time so I miss out on the Super Co-contribution.

Fact
You can contribute small amounts of personal contributions over the whole year.

Tip
If you are eligible, Super Co-contributions are paid into your super fund automatically once you do your tax return

What are the Dollars & Sense Blogs all about?

Well, I am glad that you asked.

After designing, printing and posting client newsletters the other day, I was struck by the "light bulb" idea to begin blogging. It's a quick and effective way to communicate and offers so much more possibility than quarterly snail mail.

Alan and I see our role as more than a one-off tax season service for our individual clients. We are your accountants every day of the year. Unfortunately, it is often difficult to build upon that relationship and extend service throughout the year because most of our individual clients only phone in around July... even later if they aren't expecting a refund.

So, I asked around to discover what it is people really want to know and services they wished their accountant provided. As it turns out, there is a whole LOT... more than enough to justify regular blog updates.

Many of you face issues on a daily basis dealing with various government departments, understanding and claiming ever-changing entitlements, sorting out a household budget, knowing what records to keep, making sense of tax jargon, getting out of debt, contemplating home-businesses or getting back into the workforce once the kids are at school. Phew! It's no wonder we are all stressed these days.

As a family with three young children ourselves, we understand the frustration.

The aim of the Dollars & Sense blog for Individuals is to provide you with relevant information and tips so that you can stay informed and on top of nitty-gritty household management.

While I am beginning the blog with local families and clients in mind, most of the information and resources will be relevant to any Australian household.

You can expect articles, news, reviews, hints, tips, lessons and links covering everything outlined above from claiming tax rebates to cutting the grocery bill.

I'll be maintaining the "Individuals" blog and adding postings on a regular basis. Content will be guided by your feedback so don't be shy about making suggestions or offerring your comments.

We are also establishing the Dollars and Sense for Small Business blog with similar aims as an additional service to our business clients and anyone else who is interested.

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Christie Lewis is a business partner with Alan Lewis Accounting & Taxation Services. Located on the NSW Central Coast. More than just a tax time necessity... we remain at your service for the entire year. Visit us online today at www.lewistaxation.com.au

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